HMRC policy change frees up withheld Gift Aid payments

Charities are set to receive £1.6m of unpaid donations made through JustGiving after changes to HMRC rules.

Previously, donations were withheld if they were accompanied by messages including the names of more than one person. This meant charities were denied payments from couples or parents who signed both names to gift aid claims.

Following months of talks, HMRC has now updated its guidance regarding Gift Aid and many charities will now receive income they thought had been lost.

JustGiving has also agreed to help donors make accurate gift aid declarations and minimise the risk of error.

Howard Bell, JustGiving's chief commercial officer, said the organisation has already been given the first of two expected payments from HMRC and payments were being processed to the relevant charities.

Donors who have been affected will see Gift Aid confirmations visible on pages, alongside their donations.

Bell said: “The delivery of the second tranche of Gift Aid funds will be communicated to charities in the same way, once it has been received by JustGiving from HMRC.

“In line with the new guidelines, JustGiving has also agreed to include supplementary questions within the gift aid declaration process to help donors make accurate gift aid declarations and minimise the risk of error.

“We will continue to monitor and optimise our donation flow to maintain the very high donation conversion rates that our charities expect of JustGiving.”